Minnesota’s minimum wage rates will be adjusted for inflation effective Jan. 1, 2021, to $10.08 an hour for large employers and $8.21 an hour for other state minimum wages.
The current large employer minimum wage, $10, will increase by eight cents to $10.08.
Other state minimum wages, including the small employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.15, will increase by six cents to $8.21.
These are both 0.8 percent increases.
As of Jan. 1, 2021:
• Large employers – with annual gross revenues of at least $500,000 – must pay at least $10.08 an hour.
• Small employers – with annual gross revenues less than $500,000 – must pay at least $8.21 an hour.
The training wage rate, $8.21 an hour, may be paid to employees who are younger than 20 years of age for the first 90 consecutive days of employment.
The youth wage rate, which is $8.21 an hour, may be paid to employees younger than 18 years of age.
These state minimum wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum wage rates.
In the balance of the state, for February 2020, an estimated 206,000 jobs, or 8.5 percent of the total, paid the minimum wage or less.
February 2020 was the last month before the COVID-19 pandemic had a significant effect on the economy.